The PDMA Handbook of New Product Development

16.2. Why Interact with Customers?

The first question that a product manager might ask is, "Why should we spend our time and resources on interacting with customers?" The answer to this question can be gleaned from the success stories of several innovation-vanguard firms such as 3M, Black and Decker, Rubbermaid, Bosch, Philips, and Sony, who rely primarily on customers for new product ideas and input (Deschamps and Nayak, 1995; McKenna, 1995). These examples and several empirical studies suggest that customer interaction in NPD can offer many benefits. Notable among them are:

• Superior and differentiated new products: Customer input and interaction is needed to develop a differentiated and unique new product. It is a key issue because today's customers are more sophisticated and demanding and search for superior value in a new product. For example, Gillette's innovation philosophy has been to create differentiated products that serve customers' needs uniquely. Thus, Gillette has kept tabs on its customers, closely noting their use patterns and preferences in grooming, oral care, and other day-to-day needs. Dell has also actively sought customer input for developing superior products, as evident from a recent comment of its CEO, Michael Dell: "we want to continue to be innovative and aggressive about seeking customer input and using it to develop future Dell products." Their latest innovation, a new corporate notebook, is the result of an active collaboration between Dell's customers ...